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In this video tutorial, viewers learn how to remove a watermark in Microsoft Word. The example document contains a "draft" watermark, but other common watermarks include "confidential," "sample," "urgent," and "do not copy." Once the document is finalized, the watermark should be removed. Attempting to double-click the watermark may not work, so the correct method involves going to the "Design" tab, clicking on "Watermark," and selecting the drop-down arrow to choose "Remove Watermark." Following these steps effectively removes the watermark from the document.